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STATEMENT OF THE CASE

In September 1995, respondent Yumi Ito, an American citizen and a resident of California, was severely injured as a passenger in a car accident. The accident took place in Japan, and was caused by a driver insured by petitioner Tokio Marine and Fire Casualty. During the course of her recovery in Japan, Ms. Ito was forced to return to the United States several times at Tokio Marine’s expense, because her temporary visa repeatedly expired. Because her frequent trips to the United States proved costly for Tokio Marine, it sought to enter into an arrangement under which Ms. Ito would complete her recovery and rehabilitation in the United States. Pet. App. 8-9a.

In July 1996, while Ms. Ito was in the United States, Tokio Marine offered to payMs. Ito’s medical expenses and her lost income, as well as a daily living allowance, but only on the condition that Ms. Ito complete her recovery and rehabilitation in the United States. Ms. Ito agreed, and thereafter located physicians in California who treated her extensive injuries. Ms. Ito’s doctors and medical records from 1996 until the present are located in California, as is evidence of her lost income. Id.

Tokio Marine paid Ms. Ito’s expenses as agreed through August 1997. In September 1997, Tokio Marine discontinued payments to Ms. Ito, citing a variety of discrepancies regarding Ms. Ito’s medical care and lost income, as well as alleged concerns about the competence of her physicians in California. During this time, Tokio Marine continually reassured Ms. Ito that it would reimburse her for these costs, as soon as the discrepancies were resolved. Pet. App. 9a.

In 2000, Ms. Ito took steps to file a lawsuit in Japan

against Onizuka and Sasaki, the drivers A settlement agreement was entered

in the 1995 accident.

into

in

2002.

The

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